Emerging-Market Shares Extend Gains, Dollar Steady

Emerging-market stocks extended their longest winning streak since August while the dollar was steady after a four-day drop as Federal Reserve officials reignited the debate on the timing of further policy tightening.

The MSCI Emerging Markets Index rose for an eighth straight day as Chinese shares traded in Hong Kong advanced and South Korea’s Kospi headed toward the highest close in almost six years. Japan’s Topix index declined after Monday’s holiday. The Bloomberg Dollar Spot Index was slightly higher, halting a string of losses. Oil regained some of its declines from the previous session while gold fell and copper led a retreat in basic metals.

The Fed could raise interest rates two, three or four times this year, said Chicago Fed President Charles Evans, though his Minneapolis colleague Neel Kashkari argued that there was no need to rush. In France, presidential candidates squared off in a TV debate Monday night ahead of the upcoming closely watched election.

Emerging-market stocks are trading at the highest levels since June 2015 while the dollar has slumped as much as 1.7 percent after the Fed raised interest rates on March 15 yet didn’t accelerate the timeline for future tightening. Volatility remains low across markets from equities to currencies and fixed-income as investors strive to assess how sustainable the nascent global economic recovery is.

South Korea’s Kospi jumped 1 percent, poised for the highest close since July 2011. The Hang Seng China Enterprises Index climbed 0.6 percent to the highest since November 2015. Taiwan’s Taiex increased 0.6 percent.

About the Author

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: samed@investorsking.com.

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